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India Vs Taiwan Stock Market : Taiwan has left India behind in terms of stock market value (market capitalization). In this era of Artificial Intelligence (AI), the tremendous rise in the shares of Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chip maker, has taken Taiwan to this position.

According to Bloomberg, as of Monday, Taiwan’s market capitalization reached $4.95 trillion (about Rs 415 lakh crore), while India’s market value fell to $4.92 trillion (about Rs 413 lakh crore). As a result, Taiwan is now among the top five stock markets in the world, after the US, China, Japan and Hong Kong.

The main reason behind this surge in Taiwan’s stock market is TSMC. This single company has 42% weightage in Taiwan’s benchmark index. So far this year, the company’s shares have registered a gain of 49%.

This company dominates the global supply of semiconductors (chips) used for AI technology. A dominance that the Taiwanese market is currently benefiting from.

Taiwan got a boost from the new rules (India Vs Taiwan Stock Market)

Taiwan’s regulators have recently relaxed investment rules. Domestic funds are now allowed to invest up to 25% of their total assets in any one large-cap company; Earlier this limit was only 10%.

Currently, only TSMC meets this specific criteria. According to JPMorgan, this regulatory change could potentially bring an additional $6 billion (about Rs 50,000 crore) of investment into the Taiwanese market.

Foreign investors withdrew Rs 2 lakh crore from India

This year has proved to be quite challenging for the Indian stock market. So far this year, foreign investors have pulled out about $24 billion (roughly Rs. 2 lakh crore) from the Indian market.

The main reasons behind this withdrawal are said to be the high valuation of Indian shares and the weakening of the Indian rupee. On the contrary, investors are investing money in those markets. Like Taiwan and South Korea which are directly involved in AI hardware and manufacturing.

Indian market lagged behind due to these 3 reasons

High energy costs and inflation: Rising energy costs have raised inflation concerns in India, impacting growth expectations.

Lack of AI companies: India lacks companies that are directly involved in global AI infrastructure or hardware manufacturing.

Slowdown in corporate earnings: The pace of growth in corporate profits in India has also been slow, which has reduced investor confidence.

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